TMI Blog2022 (2) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... manded to the Original Adjudicating Authority with directions to verify this claim, and thereafter, to pass a reasoned order in accordance with law. Erection, commissioning and installation services - HELD THAT:- The said amount has been booked by Revenue, from the Director s report for the year 2006-2007, being annexed to the audited accounts for the year - March ending 2007, wherein the Board of Directors have stated that the appellant have received a contract/ project for laying of transmission line worth ₹ 800 million (₹ 80 Crores) - this appellant was only a consortium partner for the sake of giving financial backing to M/s. Voltech Projects Pvt. Ltd., which is the leading party , and as per declarations in the MOU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HAT:- Such service, admittedly, has been rendered by the service provider located outside India and have been received by the appellant in India. The appellant have been involved in this business being from the year 2006-2007 to 2010-2011. The said taxability (under RCM) was highly debatable and was under litigation - The issue was finally decided by the ruling of the Bombay High Court in the case of INDIAN NATIONAL SHIPOWNERS ASSOCIATION VERSUS UNION OF INDIA [ 2008 (12) TMI 41 - BOMBAY HIGH COURT] , wherein it was held (in the writ petition) that an assessee is required to pay service tax under Reverse Charge Mechanism for the specified services, w.e.f. 18.04.2006 only, when Section 66 A was introduced in the Finance Act. Further, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... audited by the Audit officers from Service Tax Commissionerate, Delhi for the period 2006-07 to 2010-11. The Audit team observed that the appellant did not pay/short paid service tax of ₹ 7,53,49,212/- under the following heads:- Sr. No. Nature of Service Period Service Tax (Rs.). 1. Banking and other Financial Services, Business Auxiliary Services. 2007-08 to 2009-10 2,56,27,858/- 2. Erection, Commissioning or installation services 2006-07 4,21,58,314/- 3. Banking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Governments at reduced prices (than cost), as per the directions of the Government. Thus, they have incurred loss, which is reimbursable under the scheme by the Central Government. However, such amount received has been mistakenly booked under the Commission Income head. From all the evidences and documents shown to us, it appears that, if the said amount is actually by way of subsidy, the same will not be exigible to service tax. However, for verification of this fact that the amount of subsidy has been wrongly booked under the Commission Income . We are remanding this issue to the Original Adjudicating Authority with directions to verify this claim, and thereafter, to pass a reasoned order in accordance with law. 8. So far the next ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and other financial services on which tax has been levied under Reverse Charge Mechanism. 9.1. Ld. Counsel explains that the transaction is that - the appellant opens letter of credit for import of goods/merchandise through their bankers, in favour of the foreign party/shipper. In such transaction, the Indian banker informs the banker of the shipper (in foreign country) the fact of opening of the letter of credit in favour of the shipper. This communication by Indian Banker to the foreign banker is through the agency of SWIFT, which is an agency for transmission of foreign monetary transactions, maintaining confidentiality and integrity. SWIFT recovered charges from the sending banks (Indian Bank). After the foreign bank receives t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of our findings. 10. Further, ₹ 23,41,210/- is towards Business Auxiliary Services received by the appellant under RCM. Such service, admittedly, has been rendered by the service provider located outside India and have been received by the appellant in India. The appellant have been involved in this business being from the year 2006-2007 to 2010-2011. The said taxability (under RCM) was highly debatable and was under litigation. The issue was finally decided by the ruling of the Bombay High Court in the case of Indian National Shipowners Association 2009 (13) STR 235 (Bombay), wherein by judgement dated 11.12.2008, it was held (in the writ petition) that an assessee is required to pay service tax under Reverse Charge Mechanism ..... X X X X Extracts X X X X X X X X Extracts X X X X
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